They all refer to the same thing. Let’s look at it this way, if you have a share in a role in a play, that’s to say that you have a part or share in the play. If you own the shares of a company, that you actually own something of that company. you are a shareholder of the company.
The overall company market value (or its market capitalization) can be calculated as the product of total number of issued shares and the current market value of the shares.
What do you get as a shareholder of the company? Oh well, it is simple, if the company does well for the year, you are entitled to a share of the amount of profits the company makes, and these are called the dividends.
To engage in share trading, you would need a stock broker to assist you in the Buy/Sell of your shares, and these brokers will typically charge a brokerage fees for their service.
The prices for shares are determined by number of people trading the shares at that moment. If the parties interested in that share is minimum, the Buy/Sell price of that share will widen significantly, precluding you from trading it.
When trading shares, you can only profit from shares trading only if the shares is in the Bull Market. You buy at $1.50 and we sell at $2.10. In order to be able to do this, You would need to have real capitial to stock the shares, which can in some circumstances be limiting due to the amount of funds that you may have and the amount of fund that you are willing to risk.
With share trading, it is more difficult to make money when the share price is in a Bear market. It is almost impossible for an average investor to profit, but it can be possible if you have the use of sophisticated tools that are beyond the reach of most average investors.
There are instances when the share market hits a valley or is in a decline. At these times it is important to be able to take advantage of the market conditions. Some of the biggest, fastest moves happen as panic sets in. Unless you are experienced investor, you’re not going to be able to take advantage of these moves and your only option is to cash in your shares and sit on the sidelines waiting for the right time to re-enter the market.
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